KARACHI: The Saudi Riyal (SAR) recorded a slight increase against the Pakistani Rupee (PKR) in the open market, with the buying rate rising to Rs76.15 on July 8, 2025.
The selling rate also rose marginally to Rs76.40. This modest increase reflects steady remittance inflows and seasonal demand, highlighting the Riyal’s critical role in Pakistan’s economic framework.
Introduction to the Saudi Riyal and Pakistani Rupee
The Saudi Riyal (SAR), the official currency of Saudi Arabia, is subdivided into 100 halala and managed by the Saudi Central Bank. Pegged to the US dollar, the Riyal maintains a stable value, making it a reliable currency for international transactions and remittances. Its consistent strength is essential for the millions of Pakistani workers in Saudi Arabia, whose earnings significantly bolster Pakistan’s economy.
The Pakistani Rupee (PKR), denoted by ₨, is Pakistan’s official currency, regulated by the State Bank of Pakistan under a managed floating exchange rate system. Introduced in 1948, the Rupee’s value is influenced by domestic factors such as inflation, trade balances, and foreign exchange inflows. Its performance against major currencies like the Riyal is shaped by market dynamics and remittance trends.
1 Saudi Riyal = 75.79 Pakistani Rupee
Importance of the Saudi Riyal for Pakistanis
The Saudi Riyal holds immense significance for Pakistan due to the strong economic and labor ties between the two nations. Saudi Arabia is home to a large Pakistani expatriate community working in sectors like construction, healthcare, and services. In May 2025, remittances from Saudi Arabia totaled $913.3 million, making it the largest contributor to Pakistan’s remittance inflows, as reported by the State Bank of Pakistan. From July 2024 to May 2025, total remittances reached $34.9 billion, a 28.8% increase from the previous fiscal year, underscoring the Riyal’s pivotal role in strengthening Pakistan’s foreign exchange reserves.
For Pakistani households, the SAR-PKR exchange rate directly impacts their financial well-being. Today’s rate of Rs75.71 means that converting 1,000 Saudi Riyals yields Rs75,710, a slight improvement over last week’s Rs75,690. This increase enhances the value of remittances, supporting families with essential expenses like education, healthcare, and housing.
Impact of Exchange Rate Movements
The slight strengthening of the Saudi Riyal to Rs75.71 has both immediate and broader economic implications. For individuals, the higher rate boosts the purchasing power of remittances, offering relief amid rising living costs in Pakistan. Businesses engaged in trade with Saudi Arabia, particularly those importing oil and petrochemicals, benefit from the Riyal’s stability, ensuring predictable transaction costs. However, a stronger Riyal could marginally increase import expenses, impacting Pakistan’s trade balance.
On a macroeconomic level, the SAR-PKR exchange rate plays a key role in Pakistan’s economic stability. The recent uptick supports the Rupee’s value, helping to curb import-driven inflation. Pakistan’s foreign exchange reserves, which crossed $11 billion in October 2024, are bolstered by steady remittance inflows from Saudi Arabia. While a weaker Rupee can enhance export competitiveness, the current stability in the Riyal-PKR pair supports Pakistan’s efforts to manage external debt and maintain economic resilience.
Looking Ahead
The modest rise in the Saudi Riyal’s value to Rs75.71 reflects ongoing market dynamics, driven by remittance flows and trade activities. Currency traders and policymakers are advised to monitor these trends closely, as even minor fluctuations can affect remittances, trade costs, and economic planning. For Pakistani expatriates and their families, the Riyal’s strength remains a vital lifeline, reinforcing its role in sustaining Pakistan’s economic stability.
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